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For Those Waiting For An Hpc


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In what way?

Because my rent is less than the income I'd lose if I bought the house I'm renting and I haven't got my money locked into an illiquid, depreciating asset. Add to that not having to pay out for repairs and maintenance and not having the chore of decorating makes it the obvious choice for me.

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Just to answer the OP. For me, it's not a question of waiting, as I was not going to buy during the boom anyway, and never wanted to. Hoping prices are less in a few years time though - I'm certain they will be. Already we have a stalemate where nobody is going to buy, because literally everybody knows that prices are way too steep, defying gravity and logic. The change where a trickle in falls becomes an avalanche will literally happen overnight - that's my humble opinon. When that happens is anybody's guess. The props they have been using are holding back too much a burden now. And perhaps they were only meant to hold back the tide long enough to give the elite slightly longer time to sell off what needed to be sold off. The public phase of the boom will alwys be forfeit, the props may even be swiftly booted away when the time arrives. Just my humble assertion of the situation from the perspective of an outsider to the property bubble investment mania.

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Just to answer the OP. For me, it's not a question of waiting, as I was not going to buy during the boom anyway, and never wanted to. Hoping prices are less in a few years time though - I'm certain they will be. Already we have a stalemate where nobody is going to buy, because literally everybody knows that prices are way too steep, defying gravity and logic. The change where a trickle in falls becomes an avalanche will literally happen overnight - that's my humble opinon. When that happens is anybody's guess. The props they have been using are holding back too much a burden now. And perhaps they were only meant to hold back the tide long enough to give the elite slightly longer time to sell off what needed to be sold off. The public phase of the boom will alwys be forfeit, the props may even be swiftly booted away when the time arrives. Just my humble assertion of the situation from the perspective of an outsider to the property bubble investment mania.

I agree, it will suddenly be impossible to deny, asking for five years out of date prices is already looking a little eccentric IMO.

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The way I look at it is this.

I do think it is a good idea to own your own house so that when you retire you have somewhere to live and do not have to worry about ongoing rental costs.

However, when you are younger, you often have a requirement to live in areas/houses that you would not want to own longer term. For example, I rented an apartment for 6 years in the middle of a Berkshire town. It was great for work and great for being able to wander in to the town center pubs/bars etc. I would never have bought such a place though. I now live in Australia, where I rent as I will not be staying here for that long. I will probably move to Holland later this year, where I will rent in Amsterdam. Renting gives you the flexibility to move around and live in places that make sense in the short term.

I will buy somewhere in the UK though. I want a 3 bed place, with a garage, in an OK location, in the South East. I will buy when I have saved enough money to buy such a place. Right now, I am 80% of the way there. If houses fall 20%, I will buy immediately. If they do not, I will buy when I have saved up the other 20%. Once I own said house, I will have achieved my desire for somewhere to live longer term. If I want to continue my globetrotting, I will rent it out. But I will have that long term security. I do not ever want to have a mortgage as it ‘forces’ you in to a certain lifestyle. My objective is to retire as soon as I can. Once I have a house, I will start building up assets for retirement.

So, if house prices fall, I will buy quickly. If they stay the same, I will buy in a couple of years.

In terms of rental cost, I did the maths a few year back about the flat in the Berkshire town. I worked out (taking in to account HPI, maintenance, estate agency fees etc) that renting the flat had cost me something like £30K (over and above buying it) over 6 years. So £420 odd per month. That is money that I am happy to spend for the flexibility of lifestyle that renting provides. To be fair, if I had still been living there today, I suspect the figure would probably have been less than £420 per month as prices have remained static (or declined slightly) for apartments in the Berkshire town. On the flip side though, Mortgage costs have gone down.

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The way I look at it is this.

I do think it is a good idea to own your own house so that when you retire you have somewhere to live and do not have to worry about ongoing rental costs.

Why would one worry with the equivalent cash in the bank? The interest pays the rent and there are no incidental costs associated with owning and best of all, no depreciation. I would worry if my money were tied up in a house in this market.

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The Wall Street Crash of 1929 and the Great Depression soon followed.

If you think the Western economies can continue to limp on as they have been doing these past few years, creating money out of thin air to pay their bills, getting ever deeper into debt, borrowing money against non-existent future growth, supporting ever increasing numbers of economically inactive citizens, bailing out ever more indebted banks and other financial institutions, not to mention insolvent nations like Greece I say fine. Buy a house.

:D:D:rolleyes: SO true. People seem unable to stand back and see the wood for the trees.

This is just the start too. It's DEAD out there. DEAD.

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A house in my local village was put up for sale in 2010 for £190k.

[An elderly couple. One died. One went into a home with Altzheimers. Children are paying £600 per week for the costs of the home]

Unsold, 2011, so reduced to £135k.

Still unsold 2012, new Estate Agent recommended putting it on market for £120k.

I'll buy it, when it reaches £75k.

Which is £10k more than its 1995 sold price of £65k.

Your question seems to pre-suppose that the two thirds of taxpayers earning less than average wage, below a certain age, have a choice as to whether they can buy a house at their presently massively overinflated levels. [Only if they fall for the Governments SUCKER shared ownership, homebuyer direct/council mortgage approved slavery schemes]

Why work in the UK, and buy into a depreciating asset class, if you can work in a number of other countries, which have experienced 60% falls from peak?

Where the average house price is 3x average individual salary?

Where Utilities have not tripled in a decade, and Cuncil tax has not Doubled?

Which may offer a better quality of life and better weather?

It may take ten years to wind down UK house prices back to their long term average affordability as a proportion of income, but it will happen.

FANTASTIC post. FANTASTIC.

Absolutely sums it all up - PERFECTLY.

The UK is a F*****G SH* THOLE. RIP-OFF - RIP-OFF - RIP-OFF - RIP-OFF - RIP-OFF - F*****G SH* THOLE

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Why would one worry with the equivalent cash in the bank? The interest pays the rent and there are no incidental costs associated with owning and best of all, no depreciation. I would worry if my money were tied up in a house in this market.

I am not particularly fussed about whether I could buy somewhere for 2% less in 2 years time and I dislike the uncertainty that surrounds investing in equities/bonds at the moment. Returns from cash are way below inflation. When I can afford the house I want, I will buy it. I can then move on a start building up cash for my future plans, secure in the knowledge that I have somewhere to live whatever happens.

Do not get me wrong, I would like prices to decline as I could get the house quicker. But it will not stop me buying if they do not.

My objective is not to make/save money. It is to own somewhere to live. Once I have it, I will not really care what happens to the value of it.

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Not when measured against house prices.

Yeah, but what exacatly are you trying to achieve with that metric? It does nopt matter to me very much. Once I own a house I am one step closer to my dream of retiring and buggering off around the world living life as a nomadic angler.

What is your goal - why do you want houses to get cheaper?

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Yeah, but what exacatly are you trying to achieve with that metric? It does nopt matter to me very much. Once I own a house I am one step closer to my dream of retiring and buggering off around the world living life as a nomadic angler.

What is your goal - why do you want houses to get cheaper?

You said that it was important to own a house, for security, when you retire.

I am retired and feel more secure renting, albeit with sufficient cash in the bank to buy the house I'm renting.

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You said that it was important to own a house, for security, when you retire.

I am retired and feel more secure renting, albeit with sufficient cash in the bank to buy the house I'm renting.

It all boils down to the feeling of security...you have security when you have freedom, choices and flexibility to move/change quickly if/when the need arises which you quite clearly have.....not everyone at the start of their working lives have that luxury, hopefully that will come through careful planning, working hard, making the right financial decisions at the right time and some luck thrown into the mix. ;)

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Yeah, but what exacatly are you trying to achieve with that metric? It does nopt matter to me very much. Once I own a house I am one step closer to my dream of retiring and buggering off around the world living life as a nomadic angler.

What is your goal - why do you want houses to get cheaper?

Bit confused. Does buying now make that happen quicker, and do you need a house in the UK when you bugger off.

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Yeah, but what exacatly are you trying to achieve with that metric? It does nopt matter to me very much. Once I own a house I am one step closer to my dream of retiring and buggering off around the world living life as a nomadic angler.

What is your goal - why do you want houses to get cheaper?

deflation is the natural state of our economy....falling prices actually make us richer through the efficiencies of our production.

Bankers dont want that.

Therefore, I do.

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You said that it was important to own a house, for security, when you retire.

I am retired and feel more secure renting, albeit with sufficient cash in the bank to buy the house I'm renting.

That may be true. But WHY does it make you feel more secure?

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Bit confused. Does buying now make that happen quicker, and do you need a house in the UK when you bugger off.

No, I buy when I can afford to buy. I am saying that I am not trying to time the market.

And a house in the UK is nice because I know where I will be living when I am old and unable to hold down a job. Rather than being dependent on the low end renatl market. Plus, it pays me a meagre income alonmg the way.

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Because I am trying to work out how you define success with regards to HPC. I want an OK house without a mortgage. That is fairly clear. You want house prices to drop. But why? So you can spend cash going on cruises? Because you want to have a mad year in a casino? Because you have a penchant for the 37 Chateau Montrachet? Or because you want to die with lots of $$$. There has to be a reason that motivates you?

And Lepista, when I buy a house I will not have to pay any rent either.

Finally, to say it like it is:

- I do not know where you live Bruce, but if you live in the south east then percentage house price falls are WAY below inflation. So capital is getting eroded.

- You bang on all the time that interest from your savings pay your rent. That may be true, but do they also increase in line with inflation AFTER covering you rent. I suspect not.

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I am not particularly fussed about whether I could buy somewhere for 2% less in 2 years time and I dislike the uncertainty that surrounds investing in equities/bonds at the moment. Returns from cash are way below inflation. When I can afford the house I want, I will buy it. I can then move on a start building up cash for my future plans, secure in the knowledge that I have somewhere to live whatever happens.

Do not get me wrong, I would like prices to decline as I could get the house quicker. But it will not stop me buying if they do not.

My objective is not to make/save money. It is to own somewhere to live. Once I have it, I will not really care what happens to the value of it.

So if your house lost 100k in value, you wouldn`t really care? Can I send you my bank details, you might as well piss it into there as anywhere else , it`s only clumps of paper after all :lol:

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So if your house lost 100k in value, you wouldn`t really care? Can I send you my bank details, you might as well piss it into there as anywhere else , it`s only clumps of paper after all :lol:

Not really, no. I would still have a house that I am OK with that would have cost me a few years savings. I would have no desire to do anything with it other than live in it when I am old. Why would its value worry me?

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